Segregated Funds

A segregated fund is an investment fund that you hold within an insurance contract. The term “segregated” refers to the fact that your investment is separated from the general assets of the insurance company. Your insurance contract dictates the insurance protection you receive, so segregated funds are an insurance contract that provides you investment management plus protection.

Unique Advantages

Segregated funds are similar to mutual funds in many respects but provide a number of additional features and benefits:

Professional money management

Like mutual funds, segregated funds are run by professional money managers who have the experience and skills necessary to effectively manage your money. They also have access to economic data, company research reports and technology that may not generally be available to you.

Diversification

Like mutual funds, segregated funds provide you with access to diversified investment portfolios. Diversification – or spreading your assets among a variety of different investments is an investment strategy designed to lower a portfolio’s overall risk while enhancing returns over time.

Why choose segregated funds?

Flexibility – Segregated funds are similar to mutual funds in that they can be invested in a wide variety of equity and fixed income assets, and units can be purchased or redeemed (bought or sold) at any time for the current value.

Guarantees – Because they are considered life insurance or annuity products, segregated funds have some guarantees through the provider.

Potential Creditor Protection – As long as the named beneficiary qualifies under provincial law, investments may be protected against seizure by creditors in case of an unexpected lawsuit or bankruptcy, an important consideration for professionals and small business owners.

For more information contact one of our certified LCU Financial associates.

 

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